What is the required action of the Chocolate Fish Coffee franchisee regarding the proposed location?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
ARTICLE 6. LOCATION, DEVELOPMENT, AND OPENING
6.1 Determining Location and Territory.
- (i) Franchisee shall find a potential Location within the Development Area described on the Summary Page. Franchisee shall submit its proposed Location to Chocolate Fish Franchising for acceptance, with all related information Chocolate Fish Franchising may request. If Chocolate Fish Franchising does not accept the proposed Location in writing within 30 days, then it is deemed rejected.
- (ii) When Chocolate Fish Franchising accepts the Location, it will issue a Location Acceptance Letter in the form of Attachment 2 which states the Location and Territory. Chocolate Fish Franchising shall determine the Territory in its good faith discretion, substantially in accordance with Item 12 of the Franchise Disclosure Document. If Chocolate Fish Franchising fails to state the Territory in writing within 60 days after Franchisee opens the Business to the public, the Territory will be deemed to be the zip code which includes the location of the franchised business and those zip codes which immediately surround the location of the franchised business and together comprise a total of 40,000 population.
- 6.2 Lease. In connection with any lease between Franchisee and the landlord of the Location: (i) if requested by Chocolate Fish Franchising, Franchisee must submit the proposed lease to
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to the 2024 Chocolate Fish Coffee FDD, the franchisee is responsible for finding a potential location within the designated Development Area. The franchisee must then submit this proposed location to Chocolate Fish Coffee for approval, including any related information that Chocolate Fish Coffee may request. Chocolate Fish Coffee has 30 days to either accept or reject the proposed location in writing; failure to respond within 30 days results in automatic rejection.
If Chocolate Fish Coffee accepts the location, they will issue a Location Acceptance Letter, which includes the location and territory details. Chocolate Fish Coffee determines the territory at its discretion, following guidelines in Item 12 of the Franchise Disclosure Document. If the territory is not defined in writing within 60 days after the business opens, the territory will default to the zip code of the franchised business and the surrounding zip codes, encompassing a total population of 40,000.
Furthermore, if Chocolate Fish Coffee requests, the franchisee must submit any proposed lease agreement to Chocolate Fish Coffee for written approval. The lease term, including renewals, must be at least as long as the term of the Franchise Agreement. The franchisee must also make commercially reasonable efforts to have the landlord sign a rider to the lease in the form required by Chocolate Fish Coffee.